Man exists in a constant flow of information. Not every topic he is trying to figure out on his own. Some are not interested, others are too complicated. However, many try to keep abreast of economic news. After all, the living standards of everyone depend on the success of the state in this area. Over the years, everyone has become accustomed to the term South Stream. He has firmly entered our lives. What is South Stream? Why is it so important for our country? Let's figure it out.
Trade relations with the West
You and I are not Jennifer Psaki, who does not particularly understand where the gas flows. Therefore, we understand that Russia is not connected with Europe by fiery love. There is brisk trade between the states. It is necessary to delve into its subtleties and ups and downs in order to understand what the South Stream is.
This is a system for pumping natural gas to consumers in European countries. It seems to be a very profitable project. However, its implementation is constantly slowed down. The European Union puts forward ever new demands on Gazprom. You ask, so what do they - do not need this resource? This is where the fun begins. Of course, European enterprises need natural gas. This energy source is recognized as the most environmentally friendly. In addition, gas is a raw material for some industries. And ordinary heating with it is much cheaper. So what's the problem? What is South Stream for Europeans? Why are they so stubbornly resisting the implementation of the project?
Global market
To understand the obstinacy of Europe, you need to look at the whole planet. After all, economic ties are now not local. All states have the opportunity to choose their partners based on their own interests and benefits. The European Union has a certain principle.
Countries are zealously watching to not be dependent on the monopolist. That is, liberal principles are strictly observed in the local European market. There must be competition, period. Suppose there are no problems with oil in this sense. It is offered by various producing countries. In addition, “black gold” can be transported on ships. That is, for him, the oceans are not an obstacle. The situation is different with natural gas. There are technologies to liquefy blue fuel. But firstly, it is expensive. Secondly, it is necessary to build special enterprises that allow the reverse procedure. The pipe is much cheaper.
Background
It is still unclear what the South Stream is. The fact is that Europe has been using Russian gas for many decades. The first pipeline was built in Soviet times. He walked through the territory of now independent Ukraine. Then there were no political problems. We chose the best route. This cooperation was beneficial for everyone. Europe built factories and other enterprises, the USSR received the necessary currency for the purchase of technology. However, the Union collapsed. I had to build new relations not only with Europe, but also between the once fraternal republics. On the one hand, they kind of agreed. Ukraine has become a transit country. For the use of its territory, she received good money and discounts on blue fuel. But then big politics intervened in the process …
Unreliable Transiter
Events in Ukraine developed in jerks. In 2004, the first bell rang warning Gazprom about the complication of gas transit through the territory of its neighbor. The next one was in 2009. Ukraine was shaking in the political sense. The authorities changed, and with them those who influenced transit. In order not to depend on an unreliable neighbor, Russia built a gas pipeline bypassing its territory. It works great now. Its name is “Nord Stream”. However, this pipe is not enough to satisfy the needs of all EU countries. Its southern part is provided with blue fuel through the Ukrainian pipe. And the neighbor’s appetites are becoming more and more demanding. This is where the South Stream project came about. That is, this is another gas pipeline bypassing Ukraine.
Gas supply routes to Europe
South Stream is a gas pipeline to provide blue fuel to the countries of the Balkan Peninsula, Austria and Italy.
It was first voiced in 2007. Since then, much work has been done. Contracts were concluded, technical documentation was developed, routes were laid, and so on. The European Union almost immediately began to slow down a grandiose project. The fact is that South Stream is a gas pipeline, part of which was supposed to cross the Black Sea. About nine hundred kilometers of the pipe were to lie at the bottom. Starting at the Russkaya compressor station, the pipe was supposed to exit near the city of Varna on the Bulgarian coast. In theory, in this way Europe and Russia defended themselves from transit countries, namely from Ukraine and Turkey. However, the project was not destined to be realized.
Bulgaria - the reason for the closure of the project
Work on the construction of the South Stream went with a creak. The European Union demanded more and more new approvals and set previously unannounced conditions. One of them was the Third Energy Package. Its essence was that the gas supplier cannot simultaneously be the owner of the transport system. That is, it turns out that the recipient countries of the fuel wanted to own the pipe. Russia could not agree with this, since the reliability of the “alien” conveyor was in doubt. Moreover, Gazprom was planning to carry out construction at its own expense. Why share the profit with others? South Stream, the scheme of which was nevertheless agreed with some end users, was supposed to start working in 2015. But it turned out that Bulgaria does not issue a building permit on its territory. No exhortations had any effect on her. The government of the country refused a huge profit from transit (about $ 400 million) and refused the necessary approvals.
South Stream Closed
In December 2014, the President of the Russian Federation paid a visit to Turkey. Negotiations were conducted in different directions. They also touched on issues of gas transit. By this time, Russia had already built its part of the pipe entering the South Stream. The transit scheme was already being revised by this time. Firstly, Crimea has already become part of the Russian Federation. Consequently, it became possible to reduce the cost of construction by laying pipes through its territory. Secondly, Bulgaria has officially announced the abandonment of the project. Turkey immediately took advantage of this.
"South Stream" decided to completely close. This was stated in an interview on the results of the talks by V.V. Putin. He also talked about a change in plans. During the negotiations, it was decided that the South Stream project will be reoriented to the Turkish coast. This, by the way, will significantly reduce the cost of its construction, as it will reduce the length of the marine part.
South Stream through Turkey
Gazprom has signed a new agreement with Botas Petroleum Pipeline Corporation. According to the new scheme, from the Russkaya pipe will pass along the bottom of the sea and exit on the Turkish coast. Its specifications do not change. The same volume will be delivered. Namely, 63 billion cubic meters of gas per year. Part of the fuel used by Turkish enterprises. And the surplus is planned to be bought by Europe. South Stream ”will still reach its territory. But now bypassing Bulgaria. This country was the most “affected”. After all, now she can not see either gas or money for transit. It should be noted that South Stream through Turkey solves several problems at once. Not all of them are on the economic plane, but the money from this should be added to new gas partners.
USA and South Stream
We have not yet touched on another player who influenced the approval process of the now closed project. These, of course, are our beloved States. They really do not want to give in to such a huge energy market in Russia. Europe perceived South Stream as a guaranteed solution to the problem of gas shortages. Of the other options, there is Nabucco. Only this project exists, so to speak, on paper. Before its implementation, the deal never came. In short, according to this idea, Europe could receive Turkmen gas. Turkey was to become a transit country. South Stream competed in a way with Nabucco. It is worth noting that this project was created under the protectorate of the United States. They urgently need to enter the European energy market in order to settle their own economic problems. The decisions of the European Commission, as you understand, were directly dictated by Washington. And the countries of the European Union cannot disobey them. These are the rules of this supranational entity. By the way, South Stream through Turkey eliminates the need to comply with European law. Which greatly facilitates the fate of Gazprom.
